ARTICLE 4 – ADMINISTRATION FEE

401Seventy-five (75%) of Animation Story Editors' Gross Fees are subject to the payments and deductions set out in this Article. Commencing January 1, 2005, one hundred percent (100%) of Animation Story Editors' Gross Fees are subject to the payments and deductions set out in this Article.

402The Producer shall assist in defraying the cost of administering the terms of this Animation Section by paying as an administration fee the following percentage of Gross Fees:

If the Producer is a Member in Good Standing of the APFTQ as of the date of the remittance of the fee, (which membership in good standing shall be confirmed by the APFTQ by written notice), two percent (2%) to a maximum of $750 per production or episode to the Guild, and any levies which may be due to the APFTQ directly to the APFTQ.

If the Producer is not a Member in Good Standing of the APFTQ as of the date of the remittance of the fee, as evidenced by written notice from the APFTQ to such effect, six percent (6%) with no maximum for any production or episode, such amount to be sent directly to the Guild.

403 The Producer shall remit the administration fees to the Guild and to the APFTQ on or before the 15th of the month following the payment of the Animation Writer's, and Animation Story Editor's fees. The fees shall be payable by cheques to the Guild and to the APFTQ and mailed to the Guild and APFTQ offices.

404All amounts collected under Article 402(b) above shall be divided as follows: Fifty (50%) shall be retained by the Guild and fifty (50%) shall be paid to the APFTQ. The Guild shall remit the respective shares of the administration fees itemized by production to the APFTQ within thirty (30) days of the end of each calendar quarter. Upon seventy-two (72) hours notice, an authorized representative of APFTQ may, during normal business hours, inspect the books and records of the Guild pertaining to the collection and remittance of the administration fee.

405Amounts paid under Article 402 to the Guild and to the APFTQ shall each be accompanied by a completed copy of the Remittance Statement Form provided to Producers.